Thailand's car market grew 25.59% in August 2026, driven by strong electric vehicle purchases, but domestic EV production remains below sales. Meanwhile, pickup trucks and exports face pressures. The Federation of Thai Industries (FTI) hopes the government will quickly implement measures to stimulate the market to sustain production bases and jobs.
Mr. Suwat Supakarndejakul, Vice Chairman of the Federation of Thai Industries (FTI) and Chairman of the Automotive Industry Group, said he thanked the government for the resolution of the Electric Vehicle Policy Committee (EV Board) on 10 Sep 2026, which aligns with some industry proposals, particularly measures to protect, stimulate, and promote Thailand's automotive industry.
One approach supported by the industry is restructuring the excise tax so that imported electric vehicles from manufacturers without factories in Thailand face higher taxes than locally produced vehicles. They believe setting tax rates based on investment level, production, and value added in Thailand will encourage automakers to expand production bases and increase use of domestic parts.
Mr. Suwat stated that they are still awaiting the official tax rate announcement and are studying criteria for Thai content proportions to ensure domestic parts manufacturers benefit. They also consider proposals linking import volumes to the economic value created by manufacturers in Thailand.
Domestic car sales in August 2026 totaled 59,809 units, up 1.04% from the previous month and 25.59% compared to the same month last year. Electric passenger car sales reached 19,721 units, a 113.29% increase, accounting for nearly one-third of total car sales.
Meanwhile, electric passenger car production in the same month was 13,126 units, 6,595 units less than sales. In the first eight months, production was 60,578 units versus sales of 145,132 units. FTI data shows 84,554 imported electric cars, or 58.26% of sales, meaning the industry seeks a tax structure balancing imports and domestic production investment.
Although total domestic car sales for the first eight months reached about 466,000 units, the pickup truck market, a key production base for Thailand, continues to contract. Mr. Suwat noted pickup truck sales dropped about 63% compared to 2022 and are starting to face export market pressures.
FTI is concerned that declining pickup truck production will affect parts manufacturers and employment broadly, since some pickup models use over 90% locally produced parts. They hope the government will soon implement market stimulus measures, including boosting purchasing power and credit access, to maintain production volume and the competitiveness of Thailand's automotive supply chain.
Regarding exports, 565,037 vehicles were exported in the first eight months, down 6.29% from the same period last year. FTI noted that conflicts in the Middle East have affected pickup truck exports to that market. Meanwhile, the automotive industry supports the use of domestically produced biofuels to reduce reliance on imported oil and sustain related industries.